STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2018

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

5. STOCK-BASED COMPENSATION

In April 2014, the Company reserved 8,000,000 shares of common stock under the 2014 Stock Incentive Plan with a term of 10 years expiring in April 2024. This plan provides for the issuance of various forms of stock incentives, including, among others, incentive and non-qualified stock options and restricted shares. As of September 30, 2018, there were 5,380,282 shares available for grant.

Stock-based employee compensation expense was as follows for the periods indicated:

	Three months ended				Nine months ended
	September 30,				September 30,
(in thousands)	2018		2017		2018		2017
Pre-tax expense	$	2,618	$	3,007	$	7,204	$	9,019
After tax expense	$	1,977	$	1,909	$	5,439	$	5,727

Restricted Stock

The following is a summary of the changes in non-vested restricted shares for the nine months ended September 30, 2018:

	Shares		Weighted Average Grant-Date Fair Value
Non-vested shares at December 31, 2017		2,736,365	$	14.50
Granted		522,800		25.13
Vested		748,123		13.06
Forfeited		131,392		17.01
Non-vested shares at September 30, 2018		2,379,650	$	17.15

The total fair value of shares vested was $16,445,000 during the nine months ended September 30, 2018 and $19,271,000 during the nine months ended September 30, 2017. Excess tax benefits realized from tax compensation deductions in excess of compensation expense are recorded as a discrete tax adjustment. This discrete tax adjustment was $1,620,000 for the nine months ended September 30, 2018 and $2,562,000 for the nine months ended September 30, 2017.

As of September 30, 2018, total unrecognized compensation cost related to non-vested restricted shares was $45,713,000, which is expected to be recognized over a weighted-average period of 3.5 years.